Zakaria El-Kurdi fronts court over importing tobacco without paying duty

A Melbourne businessman’s plan to avoid paying $1.6m in Customs duty on more than one tonne of undeclared imported tobacco has been laid bare in court.

Zakaria El-Kurdi, left, leaving the County Court after being released on a good behaviour bond following his conviction for importing tobacco products without paying more than $1m in duty.

A businessman who imported more than one tonne of tobacco products without paying in excess of $1m in Customs duty has avoided a prison sentence.

Zakaria El-Kurdi, 48, of Williams Landing appeared for sentencing in the Melbourne County Court on Wednesday on a charge of importing tobacco products reckless without paying duty.

He was ordered to be on good behaviour for three years.

El-Kurdi is the sole director and shareholder of Alfa Trading Group Pty Ltd but has never held, or applied for, a permit to import tobacco products into Australia.

Judge Stewart Bayles said in November 2020, El-Kurdi arranged for the importation of a consignment from Indonesia that was declared as containing 250 boxes of tissues and 172 boxes of bamboo skewers.

Zakaria El-Kurdi imported loose leaf tobacco wrapped in brown butcher’s paper and sprinkled with coffee beans without declaring it.

However, an Australian Border Force inspection revealed there was loose leaf tobacco wrapped in brown butcher’s paper and sprinkled with coffee beans inside most of them.

The tobacco-filled boxes had been double wrapped with cling wrap, while the boxes that had tissues and bamboo skewers were single wrapped with cling wrap.

The tobacco weighed 1017kg and the duty payable was $1.6m.

Judge Bayles said the tax system relied heavily on self-reporting and that offences of this nature were difficult to detect.

“They are not victimless crimes when revenue is defrauded in this manner and accordingly, there must be a stern punishment to deter those who would be minded to offend in this, or a similar way,” he said.

“It is offending of this kind that has significant financial reward and that means sentences imposed by the court must also be significant and stern.”

El-Kurdi advocated for a non-custodial sentence on the basis of his guilty plea, a lack of relevant prior conviction and the delay of three-and-a-half in the finalisation of his case.

The prosecution called for a prison term, saying general deterrence was of paramount importance.